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mytaxabc
New Member

Depreciation Recapture

Greetings! This is my first time to use TurboTax for my tax return. Can I have a question about Sales of Home (gain or loss) in the TurboTax Premier? I was relocated to the U.S. in August 2023. My primary home was rented out since August 1, 2023, and sold on February 1, 2024. For 2023 tax return, I didn't pass the substantial presence test, so I filed it as a nonresident alien. I didn't report any rental income and depreciation on my 2023 tax return since those were non-U.S. passive income.

(1) Now when it comes to 2024 tax return, do I need to report depreciation recapture from August 1, 2023 to February 1, 2024 or just from January 1, 2024 to February 1, 2024?

(2) If the house was co-owned (50/50), should I just report 50% of the depreciation value?

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